Power producers scrip in demand; gain up to 4 per cent

Shares of power producers gained as much as 4 per cent today after the Finance Minister proposed various budgetary allocations for the sector.
JSW Energy was up 3.78 per cent, while Torrent Power jumped 3.43 per cent, Adani Power (3.12 per cent), Tata Power Company (2.72 per cent) and NTPC (0.47 per cent) on the BSE.
Shares of Suzlon Energy gained 1.78 per cent, NHPC (1.43 per cent), Power Grid Corporation of India (1.21 per cent) and Reliance Power (0.78 per cent).
Led by the gains in these stocks, the BSE power index ended 1.12 per cent higher at 2,231.05.

"Extending the holiday for power sector up to March 2017 is indeed a bold move and will provide room to power sector which has been reeling under stress.
"The Government seems to be committed to enhance India's power generation capacity by ensuring adequate coal linkages to power plants which are already commissioned/ ready to be commissioned by March 2015," said Samir Kanabar, Tax Partner-Infrastructure Practice, Ernst & Young.

"Instead of annual extensions, I propose to extend the 10 year tax holiday to the undertakings which begin generation, distribution and transmission of power by March 31, 2017," Finance Minister Arun Jaitley said in his Budget speech.

This stability in our policy will help the investors to plan their investments better, he added.
Aiming to replicate Gujarat's model of 24x7 power supply by segregating infrastructure for agriculture and non- agriculture consumers, the government today announced Rs 500 crore support for the proposed scheme.
He added, "Power is a vital input for economic growth and we are committed to providing 24x7 uninterrupted power supply to all homes."
"The budget has attempted to address the short-term challenges for the power sector, and at the same time laid a roadmap for more comprehensive measures over the medium to long-term as well," said KPMG India Partner and Head - Energy and Natural Resources Manish Aggarwal.

Finance Minister Arun Jaitley announced allocation of Rs 1,000 crore for the solar power sector.
The government has set aside Rs 500 crore for new and renewable energy, Rs 400 crore for launching a scheme for solar power-driven agricultural pump sets and water pumping stations for energising one lakh pumps, and Rs 100 crore for the development of one-MW solar parks on the banks of canals.
Jaitely said measures will be initiated to provide adequate quantity of coal to power plants which are already commissioned or would be commissioned by March 2015 to unlock dead investments.